HMRC has issued a brief responding to two recent court losses on VAT issues. It does not agree with a Court of Appeal decision that compound interest is owed on VAT refunds and will seek to appeal to the Supreme Court. It also lost an appeal at the Upper Tribunal regarding input VAT recovery for management fees related to the University of Cambridge's endowment fund. The Upper Tribunal affirmed the fees were overhead costs for the University's non-business activities.